We know that putting the future of your company into the hands of others can be intimidating and overwhelming. Even still, more and more companies are putting their faith in talent acquisition firms to help grow their hiring pool. As of August 2020, 59% of businesses turn to talent acquisition firms to reduce their expenses, and 65% of businesses that outsource application hosting say they would increase their outsourcing efforts in the future.

For starters, there are various internal and outsourced hiring options that companies can use. Let’s start by defining those options and their pros and cons:

Internal Recruiter / Talent Acquisition Department

Internal Recruiters, most commonly known as Talent Acquisition Specialists, are responsible for helping to plan, budget, and facilitate hiring for their company. Talent Acquisition fits under the HR umbrella and can be a recruiter, sourcer, and/or hiring manager. Talent Acquisition is responsible for the overall hiring process from using recruitment marketing (leveraging the company branding) to drive applicants, the screening, interviewing through to and executing on the onboarding process. 

Companies most often use this option when:

• The company is smaller and makes regular but not frequent hires
• They have a robust internal talent acquisition team to fully support their internal hiring needs.

Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing (RPO) is a form of business process outsourcing where an employer transfers all (or part!) of its recruitment processes to a recruitment agency. RPO covers services from recruiting, marketing, technology, screening, selection and offer management. They also cover interview preparation and scheduling, due diligence, pre-hire paperwork and, even in some cases, onboarding. The RPO’s recruiters act as internal recruiters to your business, leveraging your company’s brand and even your internal email to provide a consistent candidate and hiring manager experience. An effective RPO partnership should feel like part of your internal HR or Talent Acquisition team. 

Companies most often use this option when:

• They have mid-to-high volume hiring needs and/or fluctuations with project/seasonal needs and the absence of an internal, robust talent acquisition function.
• They want to reduce costs and leverage industry best practices to drive quality hires.

Staffing/Employment/Recruitment Agencies

Staffing agencies work equally with both companies and job seekers. They work with companies to source candidates and with job seekers to help them find their next role .A staffing agency can typically provide temporary staffing, temp-to-hire staffing and permanent placement. Recruiters within staffing agencies are focused on making placements across various clients, and roles that can range from entry-level to executive. The company using the staffing agency will pay a fee for each permanent placement or a mark-up rate on each temporary worker’s hourly rate. 

Companies most often use this option when:

• They need temporary labor for a project (e.g. seasonal hiring) or to cover maternity leave.
• Companies that want to hire labor without the potential risks and/or they need specialized roles filled.

Contract Recruiters

Contact recruiters are brought on for a set period of time or for a specific project. Typically, contract recruiters work with various companies to help them hire a specific set of skills or to work on a specific project or to fill a role for a period of time. Partnerships with contract recruiters usually only last during the hiring process or on an as needed basis. 

Companies most often use this option when:

• They need to increase their overall recruiting capabilities for a large initiative.
• They want to save on hiring costs and only use the contract recruiter when a need arises.

Executive Search Firms

Executive search firms come into play when companies need to hire upper-level or executive management positions. Exec search firms specialize in researching passive talent with the skills, years of experience, and/or certifications that are required to fill these positions. Executive search firms are often bought on by companies who might not have the resources and time to seek out this high-level talent themselves. You can learn more about Hueman’s executive search resources here. 

Companies most often use this option when:

• They need a recruiter who specializes in and has a network of executive level candidates.
• The company does not have the time or resources to hire for these positions on their own.

HR and Talent Acquisition leaders are often faced with challenges ranging from budget cuts, lack of technology. retention and turnover concerns, creating internal best hiring processes and the list goes on. As leaders, we know that people are the most important asset for any company and that’s why it’s critical to determine the best hiring solution that will drive quality candidates and ultimately engaged workers into your organization. While outsourcing your recruitment and hiring function can be intimidating and overwhelming, putting your faith into the right partner can help strengthen your business and create a stronger workforce.

As recently as last year, 78% of businesses cultivated a good relationship with their outsourcing partners.

As an RPO provider and consultant in the industry for 20+ years, Hueman is here to help you navigate the best hiring solution that makes sense for your business. Contact us today, if you’d like to talk to a member of our team and learn more about the type of hiring solution that will work best for your business.